Stricken investment group Blue Sky Alternative Investments has had receivers from KordaMentha appointed on behalf of US hedge fund Oaktree Capital Management.
The Brisbane-based investment firm has been in duress since March last year when research reports by independent analysts and short sellers pointed out serious concerns about how the group valued assets it was managing.
The fund manager initially fought the allegations but was eventually forced to slash its claimed assets under management from about $4 billion to $2.8 billion.
In September, Blue Sky revealed it had secured a $50 million seven-year senior secured loan, at the high interest rate of 15 per cent, from high-risk lender California-based vulture fund Oaktree Capital Management.
Blue Sky has now appointed receivers KordaMentha after last week being found to have breached covenants in its deal with Oaktree.
“This appointment is necessary if Blue Sky is to maintain its investment teams, key clients and stabilise the operations and capital structure of the business,” Blue Sky said in a statement to the ASX on Monday morning.
KordaMentha partner Mark Korda said the appointment would not affect the day-to-day operating activities of the asset manager.
“Our objective during the first phase of the receivership is to stabilise the business as a strategic assessment is undertaken.”
“Existing management and key contacts for relevant stakeholders, employees and unitholders will continue to be in place as normal.”
“It will allow greater flexibility for the restructure of Blue Sky and seek to ensure the future of the business as an alternative asset investment management platform.”
Pilot Partners’ Bradley Hellen and Nigel Markey will act as voluntary administrators.
Blue Sky Alternatives Investments shares have since hit 14 cents after trading at peak conditions hitting $14.99 in November 2017.
Earlier this month, Blue Sky returned to Federal Court in its ongoing battle with former employees Mike Blakeney, Nick Waters and Pat Hayden.
The company secured court orders last month to prevent the three ex-staffers from using spreadsheets and other confidential information allegedly downloaded from its database.
The investment group has also offloaded a huge inner-city development site in East Brisbane to Mosaic Property Group, where two of Blue Sky’s trusts had raised investor cash to build 156 units across two eight-storey towers.
KordaMentha said the appointments did not cover Blue Sky’s sharemarket-listed fund or other related entities.
A separate listed Blue Sky entity, the Blue Sky Alternative Access Fund has not been placed in administration or receivership.